Tuesday, October 21, 2014

Overland On Track for Completion of Transformation

Overland Storage, Inc. reported progress on the third phase of the company's transformation and its achievements for operational efficiencies intended to deliver a profitable run-rate exiting calendar year 2014, excluding stock-based compensation and one-time charges related to the Sphere3D merger and the Tandberg acquisition.

"We are pleased to report that the expected operational changes will exceed our previously-announced annual cost savings target of $20 million by 10% to 15%. As a result, we are on track to execute on our overall transformation strategy to build a strong foundation for our core business, increase global scale, and enter new and innovative markets," said Eric Kelly, president and CEO, Overland.

Sphere3D Merger Update:

  • Sphere3D has filed with the SEC Amendment No. 2 to its Registration Statement on Form F-4/A covering the shares of Sphere 3D's common stock to be issued in connection with the proposed merger with Sphere 3D.
  • The proposed merger with Sphere3D continues to be on track to close this fiscal quarter, subject to the effectiveness of the registration statement described above.
  • Overland have entered into a memorandum of understanding with the plaintiffs in the consolidated class action cases referred to as In re Overland Storage Inc., Shareholders Litigation that would, subject to court approval and other standard conditions, provide for the settlement of all outstanding claims in regard to our proposed merger transaction with Sphere3D.

Financing Update:
Overland has secured $5.0 million of working capital in the form of debt financing from Cyrus Capital to support restructuring and transition plans.

Restructuring Update:
  • Between the closing of our acquisition of Tandberg Data and the end of this quarter, the company reduced headcount by over 100 people, constituting approximately 30% of our workforce excluding personnel in our Chinese manufacturing facility.
  • It in the process of completing the transition of manufacturing from our San Diego facility to China facility and contract manufacturers.
  • Relationship with BDT Media Automation GmbH has progressed with the expansion of the company's tape automation product offerings and previously announced patent cross license agreement.
Overland broadens its product portfolio with following products:
  • V3 hyper-converged appliances designed to address the growing virtualization and cloud markets.
  • SnapServer XSD 40, powered by the new GuardianOS 7.6 software, is a simple NAS and iSCSI SAN storage available for business needs - from virtualized server and Exchange environments, to backup and storage consolidation.
  • SnapScale clustered storage with the new version of our RAINcloud OS optimized for virtual infrastructures without adding management complexity.
  • RDX integration with SnapServer provides small-medium business customers with an affordable integrated solution for backup and data exchange.
  • NEO tape automation product line addresses a larger segment of the market, and provide our customers with a broader set of archive options.


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